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Home   /   With Your Business  /   Commercial Property Law   /  Commercial Lease Renewal
  • Commercial Lease Renewal

    Several factors need to be considered when it comes to commercial lease renewal.

    At Bennett Griffin, our commercial property law solicitors have extensive experience working on behalf of tenants and landlords.

    If you would like to speak to our specialist team about a commercial lease renewal, please call our Worthing or Chichester offices.

    Alternatively, you can email info@bennett-griffin.co.uk, and we will contact you directly to discuss your requirements.

    Renewing Your Commercial Property Lease

    One of the key factors to consider when renewing commercial property leases is whether the tenants are protected under the Landlord and Tenant Act 1954.

    The Landlord and Tenant Act 1954 is a piece of legislation that ensures a landlord cannot throw the Tenant out onto the street when their business lease ends, save for in the circumstances set out in the Act.

    This can significantly influence the direction taken when representing either landlords or tenants.

    Our commercial property law solicitors can tell you if the legislation is in place and, therefore, which strategy to take when looking to renew the lease.

    Why choose Bennett Griffin for a commercial lease renewal?

    If the lease is within the LTA 1954 Act and, therefore, the Tenant has protection, there is a set statutory framework to deal with the renewal.

    Our commercial property team works closely with the commercial property litigation team, who can provide you with expert advice and help you decide what is tactically best for your renewal.

    It is essential that you take the correct advice at the outset before commencing or agreeing to renewal terms put forward by a landlord. Once the statutory notices are served, there are strict timescales that have to be applied. The Tenant can lose the Act’s protection if they are not complied with.

    If the parties cannot agree, proceedings can be issued, and the courts ultimately decide the matter. Most cases settle before trial as the items in dispute between the parties do not usually justify the costs of proceeding to trial.

    Lease by reference

    In certain circumstances, if the existing lease is only a few years old and the terms of the renewal lease are essentially the same, using a lease-by-reference document may be the most straightforward course of action.

    This short-form agreement incorporates all the terms and conditions of the former lease save for where it sets out any variations, such as the rent and term. This is a more cost-effective way to proceed rather than creating a new document. However, it will not necessarily be the right option for every renewal.

    Contact Our Commercial Lease Renewal Solicitors

    Contact our team today if you are a commercial property landlord or Tenant and require legal assistance with a lease renewal.

    Our solicitors can advise on the best action and provide legal support throughout the process.

    Our Worthing offices are based in Liverpool Gardens opposite a public car park which can be accessed via the one-way system.

    Our Chichester office is based in Eastgate Square – the Cattle Market car park is a two-minute walk from our office.

    Frequently Asked Questions About Commercial Lease Renewals

    Can a landlord refuse to renew a protected lease?

    While a landlord cannot refuse a commercial release renewal simply due to personal conflict with a tenant, some provisions within the 1954 Act would allow them to deny renewal.

    Some of the most common reasons include the following:

    • Repeated non-payment of rent
    • Tenant’s failure to repair the premises
    • The landlord wants to occupy the premises for their own business
    • The landlord wishes to redevelop the property

    Bennett Griffin can advise on the complete list of permitted reasons. Contact our legal team today if you are a landlord or Tenant concerned about the ending of a commercial property lease.

    Will the terms of the new lease be the same as the old one?

    If the original lease is excluded from the protection of the LTA 1954, then it is up to the Landlord and the Tenant to negotiate terms.

    If the original lease has the protection of the LTA 1954, then it is generally accepted that (save for the rent and the term) the terms will be mainly on the same terms as the existing lease, save in the case of modernising the lease.

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    Christopher Spirit

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